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Tokenomics

https://hyperbolicprotocol.com/

Token Contract

Supply

100,000,000 HYPE

Distribution

  • 7.9M (7.9%) HYPE to Uniswap V3 liquidity
  • 52M (52%) HYPE used to airdrop OKLG/SMOL holders at the snapshot blocks
  • 10M (10%) HYPE to a lock contract that can never leave. We are able to withdraw protocol rewards from this 10% supply through the lock contract, however, the tokens will remain out of circulation forever.
  • 30.1M (30.1%) HYPE will initially will reside in the HYPE treasury to be used to add to LP, strategic OTC, CEX listings, but within the first few weeks after launch leftover will be burned.

Token Trade Tax

Currently, there are no trade taxes to buy or sell HYPE.
If needed, a variable tax to buy HYPE can be enabled that will range between 0% - 4%, which would be solely used to fund the lending pool.
The tax to buy HYPE is a function of the lending pool utilization. As ETH is borrowed from the lending pool, the buy tax experienced by a new investor will increase automatically to refill the lending pool, and as the lending pool is refilled through both trade taxes and borrowers paying back their loans, the buy tax will automatically trend towards 0.
Other DeFi models utilize governance tokens that serve little to no purpose outside of providing votes on protocol decision-making, with liquidity providers being separate investors who front capital used for the protocol that earn fees from usage. We are experimenting with a slightly different model where there is a single HYPE token that earns an investor governance power, should we migrate the HYPE protocol over to a DAO, and allows them to serve as a liquidity provider just by holding HYPE. As such, investors would pay a small variable trade tax to buy HYPE tokens, which can be considered the fee required to serve as said liquidity provider and earn real yield from protocol fees in the form of protocol rewards.

Initial Liquidity